I’ve just realized something quite interesting—what is copper, and why does it have such significant trading potential? Most people only know it as a reddish-brown metal used in electronics, but few notice that it has become an attractive investment tool in the global financial market.

In fact, copper has extremely high liquidity—not only because of its widespread industrial applications, but also because it reflects the overall health of the global economy very well. From construction and electronics to renewable energy systems, copper can be found everywhere. So what is the price of copper if not a “barometer” of the world economy?

Looking at the market, the global trading volume of copper in 2023 is about $308.7 billion and is expected to rise to $504.9 billion by 2033 (up 5.04% per year). This figure shows that the demand is not temporary. Chile and Peru account for 35% of global mining production, while China consumes more than 55%—and this is important because it means any change in China’s economy directly affects the price of copper.

What’s great here is that copper’s price doesn’t only depend on industrial demand. Its price is also influenced by the price of the USD, global interest rates, export policies, and even oil prices (because 30–50% of mining costs are energy). Over the past 10 years, copper has gone through major fluctuations—from $3.42 per ounce in 2014 down to below $2 in 2016, then recovering to $5.2 in April 2024. It is currently stable around $4.8 per ounce.

The most interesting part? Trends in electric vehicles and green energy are creating buying pressure for copper. An electric vehicle uses more copper than a gasoline car—from wiring and electric motors to batteries. Combined with green infrastructure projects around the world, demand for copper will remain high in the coming years. Although the world is currently experiencing oversupply (162 thousand tons in 2024), this figure is lower than earlier projections (467 thousand tons), indicating that the supply-demand balance is improving.

Interest-rate conditions are also shifting in a positive direction. Since 2022, the Fed has raised rates aggressively to fight inflation, but current forecasts suggest that central banks will start cutting rates toward the end of 2024 and in 2025. This could provide an upward boost for copper prices.

From a technical perspective, the copper price has still been in a strong uptrend since mid-March 2024 (up 22%). Although there have been some recent red candles, support levels remain solid. The Stochastic RSI indicator has fallen into oversold territory, suggesting that a short-term rebound may be possible.

If you want to trade copper, there are several ways: trading futures on exchanges such as CME, SHFE, and LME; buying ETF funds such as iShares Copper Trust; or trading CFDs if you want more flexibility. Each method has its own pros and cons depending on your goals and capabilities.

But remember—copper is just a trading tool. The most important thing is to clearly understand the factors that affect it, apply fundamental analysis combined with technical analysis, manage risk tightly, and never bet everything on a single position. The market is always volatile and unpredictable, so continuously monitoring, learning, and adjusting your strategy is the key to success.